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UNITE D STATE S DEPARTMEN T O F TRANSPORTATIO N

OFFIC E O F HEARING S WASHINGTON . DC . I N TH E MATTERO F SMIT H CABL E SYSTEMS , IN C —^ • ^ o V; > — -^jj^: x

(— 1 ^ - 1 'z^-^zi- ^ ?-• " ' ^

— ' "^i-r^ o c_)--^- n FA A DOCKE T NO . CP09AL001 2 ^ (Civi l Penalty Action ) — > DM S NO . FAA-2009-097 6 ADMINISTRATOR' S CLOSIN G ARGUMEN T I . Introduction . Complainan t

Federal Aviaiio n Administratio n ("Administrator") , throug h counsel , hereb y present s it s closin g argument . n . Al1egtttioii.<

i an dDefenses . Responden t

Smit h Cabl e Systeni-S . Inc . ("Smit h Cable" ) violate dnumerou s regulation s b y offerin g undeclare dhazardou s material s for transportatio n by air . violation s tha t warran t a 560,00 0 civi l penahy . A s allege di n th e complain t an dprove n b y th e preponderanc e o f th e evidenc e a

t hearing , o n Septembe r

10 . 200 8 i n Ketchikan , Alaska , employee s o f Smit h Cable , actin g withi n th e scop e an ddutie s o f

thei r employment , offere do n behal f o f Smit h Cabl e alarg e shipmen t

o f good s for transportatio n t

o Fairbank.s , Alask ab y passenger-carryin g aircraf t o f Alask aAirline."? . Conceale d withi n th e shipmen t

wer e tw o 16. 4 ounc e cylinder s of Coleman Propan e Fue l ("th e propane" ) an don e 1 2 ounc e can o f

Premiu mD^co r

spray pain t

("th e spra y paint") . Eac h ar c classifie da s hazardou s material s b y th e Departmen t o f Transportation' s Hazardou s Material s Regulation s (4 9 CF RPart s 171-80 ) C'HMRs") . Smit h Cabl e faile dt o meet

it s obligation , as ashipper , t o ensur e th e safet y o f it s .shipmen

r an d needlessl y place dpassengers , crew , carg o handlers , an dother s i n peril . I n fact , no t onl y di d Srnit h Cabl e fai l t o declare th e hazardou s materials . Smit h Cabl e actuall y declare do n th e waybil l that-th e shipmen t

di dno t contai n hazardou s material."3 . Smith Cable' s fundamenta l failur e t o ale n other s t o th e presenc e o f th e hazardou s materiaJ s violate dnumerou s regulatory requirements . Smit h Cabl e faile dto prepar e prope r shippin g papers , faile dt o properl y mar k o r labe l th e sliipment , andfaile dt o provid e a n emergenc y respons e telephon e numbe r fo r Alask aAirline s t o us e shoul do spil l o r othe r acciden t occur . I n s o05/19/201 1 09:5 0 FA X 202493514 2 FA A " > DM S @1003/01 3 05/13/201 1 12:0 4 9072712Q0 0 FA A PAG E 03/1 3

doing . Smit h Cabl e denie dAlask aAirline s personne l th e opportunit y t o tak e th e precaution s necessar y t o properl y transpor t thes e hazardou s materials . Moreover , th e propan e tha t Smit h Cabl e offere di s s o harardou s tha i i t i s absolutel y forbidde n fo r transpor t aboar dpassenger carryin g aircraft . I n short , Smit h Cable' s shipmen t wa s dangerou s an d warrant s asubstantia l civi l penalty . A s se t fon h i n th e complain t

an d demonstrate da t

hearing . Smit h Cabl e violate dth e followin g HMRs : a ) Sectio n 171.2(e ) in , tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n i n commerc e whe n eac h materia l wa s no t properl y classed , described , packaged , marked , labeled , an d i n conditio n fo r shipmen t

a s require do r

authorize db y applicabl e requirement." : o f

th e HMRs , o r

a n exemptio n o r

specia l permit , approval , o r registratio n issue dunde r

th e HMR s o r

Subchapte r

A o f Chapte r I o f Titl e 49 , Cod e o f

Federa l Regulations ; b ) Sectio n 172.200(a ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n withou t describin g th e material s o n th e shippin g pape r i n th e manne r

require db y 4 9 CF R 17 2 Subpar t

C ; c ) Sectio n 1,72.201(d ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n withou t includin g i n shippin g paper s a n emergenc y respons e telephon e numbe r a s prescribe db y 4 9 CF R17 2 Subpar t G ; d ) Fou r paragraph s o f

Sectio n 172.202(a ) i n tha t Smit h Cabl e offere dhazardou s tnaterial s for transportatio n withou t

includin g o n th e shippin g pape r fo r eac h materia l i ) th e identificatio n numbe r (172.202(a)(1)) : ii ) th e prope r

shippin g nam e (172.202(a)(2)) ; iii ) th e hazar dcla.$sc s o r divisio n numbe r

(172.202(a)(3)) ; o r iv ) th e tota l ne t

mas s pe r

packag e o r

tota l gros s mas s pe r

package , a s applicabl e (172.202(a)(6)) ; e ) Sectio n 172.203(f

) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n b y ai r withou t statin g o n th e shippin g pape r tha t th e shipmen t

i s withi n th e limitation s prescribe dfor

eithe r passenge r

an dcarg o aircraf

t o r carg o aircraf

t only ; 0 Sectio n 172.204(a ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n b y ai r withou t certifyin g o n th e shippin g pape r tha t di e material s wer e offere dfo r transportatio n i n accordanc e wit h th e HMRs ; g ) Tw o paragraph s o f

Sectio n 172.204(c ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n b y ai r i ) withou t

providin g tw o copie s o f th e certificatio n reqtrirc dbySertio n 17 2 20 4 (172.204(c)(2)) ; an d ii ) withou t

addin g t o th e certificatio n require db y Sectio n 172.204(a ) th e statemen t " I declar e tha t

al l o f th e applicabl e ai r

transpor t requirement s hav e bee n met " (172.204(c>(3)) ; Smit h Cab U ^ystem^ , /IK

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h ) Sectio n 172.3(X)(a ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n withou t markin g eac h packag e containin g th e material s i n th e manne r require db y Subpar t D o f Par t 17 2 o f th e HMRs ; i ) Sectio n 172.301(a ) i n tha t Smit h Cabl e offere dhazardou s material s i n non-bul k packagin g fo r

transportatio n withou t

markin g th e packag e wit h th e prope r shippin g nam e an didentificiUio n numbe r fo r th e material s a s .show n i n th e Hazardou s Material s Tabi c i n Sectio n 172.10 1 ("Hazardou s Material s Table" ) o f di e HMRs ; j ) Sectio n 172.400(a ) i n tha t Smit h Cabl e offere dhazardou s material s i n non-bul k packagin g fo r

transportatio n withou t

labelin g th e packagin g wit h label s specifie dfo r th e material s i n th e Hazardou s Material s Tabl e an dSubpar t E o f Par t 17 2 o f th e HMR.s ; k ) Sectio n 172.604(a ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n withou t enterin g o n th e shippin g pape r a n emergenc y respons e telephon e numbe r a,< ; describe di n th e section ; an d I ) Sectio n 173.27(b) ( 1 ) i n tha t Smit h Cabl e offere dhazardou s material s fo r transportatio n b y ai r aboar dpassenger-carryin g aircraf t whe n colum n 9 A o f

th e Hazardou s Material s Tabl e indicate s th e materia l i s forbidde n fo r transportatio n aboar dpassenger-carryin g aircraft . Complaint . Smit h Cabl e admit s i t

mad e th e shipmen t

i n question , bu t

defend s b y claimin g i t

di dno t shi p an y hazardou s materials . Smit h Cabl e admit s tha t i t offere dashipmen t

t o Alask aAirlines , tha t o n th e waybil l i t

describe dth e shipmen t a s "tools" , tha t

th e shipmen t

wa s no t accompanie db y a Shipper' s Declaratio n fo r Dangerou s Goods , tha t th e waybil l wa s marke dt o indicat e tha t n o dangerou s good s wer e included , an dtha t th e propan e an dspra y pain t ar e classifie da s hazardou s material s unde r

th e HMRs . Answe r

a t t-2 . Nevertheles s Smit h Cabl e denie s tha t it s shipmen t include dth e propan e o r th e spra y pain t

an dassert s severa l affirmativ e defenses . Answe r at 2-3 , III . Evidence . Th e testimon y an devidenc e presente dthroug h th e followin g witnesses , rea dfairl y an d completely , demonstrate s Smit h Cable' s culpabilit y fo r eac h o f th e violation s a s alleged . A , Stephe n Camp . Stephe n Cam p testifie db y telephon e fro mKetchika n a s follows . Mr . Cam p work s fo r Ala.sk a Airline s i n Ketchikan . (Tr . 41 ) A t th e tim e o f

th e shipment , h e ha dbee n workin g fo r A!a.ska Airline s a. s aRam p Setn-ic e Agen t fo r ove r tw o years , workin g th e ram p loadin g an dunloadin g aircraft . (Tr . 4l~42 ) Mr . Cam p wa s traine dt o scree n carg o fo r hazardou s materials . (Tr . 42) . Mr . Cam p recalle ddiscoverin g acam p stov e i n th e Smit h Cabl e shipmen t a s h e move dth e .^hipmen t t o th e warehouse . (Tr . 44 ) Specifically , Mr . Cam p testifie dthat , usin g asmal l forklift , h e lifte dapalle t

o f Smit h Cabl e .>!hipmcn

t piece s t o th e warehouse . (Tr . 47 , 75-76 ) Alon g th e way , h e hi t

abump , causin g acam p stov e withi n th e shipmen t t o fall . (Tr . 48 ) Th e fal l cause dth e stov e t o open . (Tr . 48 ) Tw o gree n tank s o f propan e .spille dou t

o f th e stove . (Tr . 48 ) A?»ftCff^fe.»rrgm. 7 I^i L DM S No . FAA-2009.097 6 Administrator' s Closin g Argumen t Pa^ e 305/19/201 1 09:5 0 FA X 202493514 2 FA A• * DM S @|005/01 3 05/13/201 1 12:0 4 907271280 0 FAAPAG E 05/1 3

Afte r discoverin g rhe propan e tanks , Mr . Cam p tol dawarehous e perso n wha t happened . (Tr . 49 ) Togethe r the y decide dthey' dbette r "g o throug h th e whol e .shipmen t an d.se e i f ther e wa.* ; anythin g el.s e i n there. " (Tr . 49 ) Durin g tha t search , they opene du p ever y bo x an dtot e i n th e shipmen t an dfoundspray paint . (TT

- 49-50,75-76 ) Mr , Cam p identifie dExhibit s C-1 , C-2 . C-3 , an dC- 4 a s photo s o

f th e propan e an dspra

y pain t foun din th e Smit

h Cabl e shipment . (Tr . .'^3

- 55) ' Th e shipmen t

ha dn o hazardou s material s marking s o r labels , (Tr . 52 ) Afte

r removin g th e "restricte dstuff

fromth e shipment , th e remainde r o f th e .shipmen

t wa s sen t o n it s wa y t o Fairbanks . (Tr . 77 ) B . Timoth v Cook . Timoth y Coo k

testifie db y telephon e fro mKetchika

n a s follows . Mr . Coo k

work s a s aramp agen t fo r Alask aAirline s i

n Ketchikan , loadin g an dunloadin g carg o o n passenge r aircraft . (Tr.85-86 ) B y th e tim e of

th e Smit h Cabl e shipment , he' dbee n wit h Alask aAirline s fo r

roughl y 1 7 months . (Tr . 86 ) Mr . Coo k ha s receive ddangerou s good s awarenes s training . (Tr . 37 ) Mr . Coo k worke do n Septembe r

10 , 200 8 an dspecificall y recall s Smit h Cable' s shipmen t

o n tha t date . (Tr , 88-89 ) Th e shipmen t containe d24 pieces . (Tr . 94 ) Mr . Coo k testifie dthat , o n tha

t day , Mr . Cam p reporte dt o hi mthat , whil e bringin g piece s o f th e Smit h Cabl e shipmen t

bac k t o th e warehouse , astov e fell of f apallet , broke open , an dexpose dacoupl e o f propan e cylinders . (Tr . 90 , 93-94 ) Mr . Coo k

describe dth e stov e foim

dwitlii n th e Smith Cabl e shipmen t a. ^ agree n self

- .•^tandin g barbcaic . (Tr . 98 ) I

t work s b y havin g abottl e of propan e screwe dint o i

t for fuel . (Tr . 98-99 ) Whe n Mr . Camp tol dhi mabout th e hidde n propan e h e found . Mr . Coo k decide dt o g o throug h th e entir e shipment . (Tr . 90 ) A t thi s point , Mr , Coo k

took pcsscssio n o f

th e shipmen t

fro mMr . Camp . (Tr . 96 ) "Whil

e doin g that

ful l screen , Mr . Coo k

discovere daca n of

spray pain t

i n on e o f th e boTce s o r crate s o f th e shipment . (Tr . 90 , 94-95 ) Upo n completin g hi s ful l scree n an d removin g th e hazardou s materials , th e shipmen t cleare dan dlikel y continue don . (Tr . 96 , 100-01 ) A carg o agen t

wrot e up areport

o f th e hazardou s material s h e an dMr . Camp discovered . (Tr . 100 ) Mr . Camp identifie dExhibit s C-1 , C-2 . C-3 , andC- 4 a s photo s o f th e propan e an dspra y pain t foun di n th e Smit

h Cabl e .shipment . (Tr . 102-06 ) Th e photo s were take n b y Kyl e Forbes , a n intern . (Tr . 103-06 ) Afte r discoverin g th e propan e an dth e spta y paint , Mr . Coo k obtaine dth e waybil l fo

r th e shipment . (Tr . 106-09 ) Mr . Coo k testifie dtha

t h e sought th e waybil l i n orde r

t o determin e wh o offere dth e shipmen t

containin g di e dangerou s goods . (Tr . 110) Durin g th e hearing . Mr . Coo k wa s pre.sentc dwit

h Eithibi t C-5 . (Tr . 106 ) Mr . Coo k

recalle dseein g Exhibi t

C- 5 on th e date i n question , Septembe r

10 , 2008 . (Tr . 107 ) H e testifie dcha t Exhibi t C- S wa s th e waybil l that matche dth e shipmen t

that th e propan e an dspray paint were div*cov«re

din- . (Tr.-106-09).

- Mr . Coo k state dthai th e eigh t

digi t numbe r o n Exhibi t

C-5,74712632 . matche dth e lo t label s o n th e

Eac h phot o wa s admitte dint o evidence . (Tr. 173-76

) Smit h C(ibl€ Systams , Tnc

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2 4 piece s o f

th e shipmen t

that containe dth e dangerou s goods , tellin g hi mtha t thi. s wa s th e waybil l fo r th e shipment . (Tr . 109) ^ C . Special Agen t

Jeffrey Dei^ , Special Agen t

Jeffrey Deitz testifie di

n perso n a s follows . Agent Deit z i s ahazardou s material s specialist/enforcemen t

agen t fo r th e FAA , (Tr . 149 ) He ha s hel dtha t positio n fo

r 1 3 years , (Tr . 150-51 ) H e i s againe dinvestigator . (Tr . 153-54 ) Amon g Agen t Deitz' s responsibilitie s i s th e investigatio n o f

hazardou s material s offere db y shipper s t o ai r carriers . (Tr . 149-50 ) Agen t Deit z firs t

learne dof

th e shipmen t

a t issu e in thi s matter

whe n h e receive dafaxe d hazardou s material s discrepanc y report (Ex . C-6 ) fro mAlask aAirline s i n Ketchikan . (Tr . 154

- 55 ) Agen t Deit z firs t

saw th e repor

t o n Septembe r

11 , 2008 . (Tr . 161 ) Agen t Deit z contacte d Alask aAirline s i n Ketchikan andaske dfo r furthe r information , includin g th e waybil l an d photograph s of

th e hazardoti s materials . (Tr . 163 ) Agen t Deit z receive dth e waybil l and photograph s fro

mAlask aAirlines . (Tr . 166-177-78 ) Wit h th e photograph s an dth e waybill , Agen t Deit z turne dt o determinin g jus t what th e hazardou s material s were . (Tr . 179-80 ) H e obtaine dmaterial safet y dat asheet s fo

r th e propan e an dth e spray paint . (Tr . 179-80 ) Ba'je do n wha t h e learned , Agen t

Deit z drafte dalette r

o f investigario n ("LOr) . (Ex . C-9 ) Agci U Deit z sen t

th e LOI , whic h i s addresse dt o Smit h Cable , o n Septembe r

17 , 2008 . (Tr . 181 ) Agen t Deit z receive daphon e cal l fro mRonal dSmith of

Smit h Cabl e on Octobe r

1 , 2008 . (Tr . 182 ) Mr , Smit

h aske dabou t

th e LOI , tol dAgen t

Deitz that

h e woul dinvestigat e th e matter , an d ge t bac k i n touc h with Agen t

Deitz . (Tr . 182-83 ) However , whe n acoupl e week s passe dwit h n o contac t fro mSmit

h Cable , Agen t

Deit z calle dMr . Smit

h o n Octobe r

27 , 2008 . (Tr . 184 ) Durin g thei r brie f conversation , Mr . Smit

h tol dAgent

Deit z tha t Smit h Cabl e "di dhav e ashipmen t an d tha t the y ha dagrill. " (Tr . 1S5 ) Mr . Smit h als o tol dAgent

Deit z tha t h e woul dpu t

hL s finding s i

n writin g an dsen dthe mto Agen t Deitz , bu t

Mr . Smit h never did . (Tr . 185 . 187)

- D . Ronal dSmidi . Ronal dSmith testifie din perso n as follows . Mr . Smith i s presiden t o f Smit h Cable , acompan y h e began in 1984 . (Tr . 294 ) I n th e summe r

o f 2008 , Smit

h Cabl e employee s Tod dLinn e an d To mFiale k

worke dcabl e project s throughou t southeas t Alaska , finishing i

n Ketchikan . (Tr . 296

- 97 , 303 ) Whe n thei r

wor k i n Ketchikan concluded . Mr . Linn e an dMr . Fialc k were t o fly to Fairbanks . (Tr . 304 ) Thei r wor k truc k wa s schedule dfo

r .shipmen t b y ferr y dtpanin g on Septembe r

15 , 2008 , fiv e day s afte

r Mr . Linn e andMr . Fiale k wer e t o fly , meanin g Septembe r 10,2008 . (Tr . 305-06 )

Exhibi t C- 5 wa s no t

accepte dint o evidenc* . A n AlaskaAirline s waybil l bearin g th e sam e ei?h t digit s wa,- ! ucLEptc

d into evidenc e o s Defendant'. ? Exhibi t B , tTr , 399-401 ) Agen t Deiu' s note s o f

hi. s conversation, ? wit

h Mr . Smit

h appea r i s Exhibi t

C-JO . Srnit h (^a^lt i Sy.stemii , fnc ^ DM S No . FAA-2009-097 6 Administrator'. ^ Closin g Argumen t Pag e 505/19/201 1 09:5 1 FA X 202493514 2 FA A * DM S @1007/01 3 05/13/201 1 12:0 4 907271260 0 FA A PA6 E 07/1 3

Turnin g t o (h e hazardou s material s in thi s case , Mr . Smit h wa s aske di f i t wa s uncommo n fo r Smit h Cabl e employee s "t o purcha5 e asmal l stov e whe n they'r e o n th e road s o n busines s venture s lik e this?" " (Tr . 307 ) Mr . Smit h responde dtha t i t wa s "fnlo t

a t al l uncommon" , tha t

i l permit s the mt o prepar e aho t mea l withou t

goin g t o arestaurant . (Tr . 307 ) I n fact , Mr . Smit h aske dhi s Ketchika n cre w whethe r the y ha dastov e i n Ketchika n an dthe y tol dhi mthe y did . (Tr . 313 ) Mr . Smit h late r

contradicte dthi.. s testimony , however , .sayin g th e cre w tol dhi mthe y weren' t sur e i f the y ha di t

i n Ketchika n o r

ha dlef t i t In aprio r

community . (Tr . 320 ) Mr . Smit h testifie dthat , fo r th e jo b the y wer e performing , Mr . Linn e an dMr . Fiaie k woul dhav e n o nee dfo r

spra y pain t

(Tr . 307-08) , bu t

concede dtha t

di dno t mea n tha t

hi s cre w di dno t

i n fac t hav e aca n o f

spra y pain t

i n Ketchikan

- (Tr . 334 ) E

- Armi e Afusia . Anni e Afusi atestifie db y telephon e a s follows . Ms . Afusi aworke dfor Smit h Cabl e fo r

tw o an d ahal f year s beginnin g i n Septembe r 20O6.(Tr . 339-90 ) Amon g he r dutie s wer e makin g trave l arrangement s fo r

Smit h Cabl e wor k

crew s an dthei r

equipment . (Tr . 39-91 ) A s Mr , Litui e an d Mr . Fiale k

conclude dthei r

wor k i n Ketchika n i n Septembe r 2008 , Ms . Afusi aarrange dfo r the m t o .ship tw o o r

thre e pallet s o f

equipmen t

an dluggag e b y ai r

Fro mKetchika n vi aAlask aAirlines . (Tr . 394-95 ) Sh e als o arrange dfo r acourier " t o tak e thes e item s fro mth e cre w t o Ala.sk a Airlines . Ms . Afusi aha dn o knowledg e o f apropan e stov e o r

abarbecu e bein g shipped . (Tr . 398 ) Ms . Afusi aarrange dfo r a n Alask aAirline s waybil l fo r th e Ketchika n cre w t o us e i n shippin g th e Smit h Cabl e item s t o Fairbanks . (Ex . B ; Tr . 399-400 ) Ms . Afusi aacknowledge dtha t Smit h Cabl e expecte dtha t

som e o f th e item s tha t

th e cre w woul dinclud e i n th e shipmen t woul db e crewmembe r

persona l items . (Tr . 404-06 ) Ms . Afusi aneve r sa w th e actua l shipment . (Tr . 406 ) F , Tod dLinne . Tod dLinn e testifie db y telephon e a s foilpwa . Mr . Linn e worke dcabl e project s fo r Smit h Cabl e fro mApri l 200 8 t o Januar y o r Februar y 2009 . (Tr . 411 ) H e di dno t us e spra y pain t

a s par t o f th e Job . (Tr . 414-15 ) However , whil e workin g ibi. s job . h e purchase dasmal l propan e stov e i n Petersbiurg , Alaska . (Tr . 415 ) Th e stov e wa s dar k colored , perhap s blac k

o r gra y o r green . (Tr . 430 ) I t work s b y havin g abottl e o f propan e screwe dint o i t fo r fuel . (Tr . 415-16 ) Whe n th e crew' s wor k

truc k wa s .shippe db y barg e withi n th e villages , th e stov e woul db e o n th e truck . (Tr . 416 ) Whe n the y complete dth e jo b i n Ketchika n an dprepare dth e Ala.okaAiriine s shipment , th e ai r shipmen t

wa s place do n shrink-wrappe dpallet,? . (Tr . 417-18 ) However , th e courie r coul dno t pu t th e pallet s o n th e courier' s taick , s o Mr . Linne , Mr . Fialek . an dth e courie r disassemble dth e pallet s an dloade deverythin g int o th e courier' s trac k b y hand . (Tr . 418-419,421 , 428-29 ) Mr . Linn e di dno t

recal l placin g du

e .stov e i n th e courier' s truck . (Tr . 419 ) / /

" Th e tran.icrip t

variou.sl y refers C

o th e courie r

a.' ; "An-f. w Services" * o r "Aer l Transportation" , h likel y i s i n Pac t Aer o Services" . ?.mirhQiM e Systems , Inc . j^^^ S No . FAA-2009-097 6 Admmistraior' s Closin g Argumen t Pag e 605/19/201 1 09:5 1 FA X 202493514 2 FA A• > DM S gjOOS/OI S 05/13/201 1 12:0 4 9072712B0 0 FA APAG E 08/1 3

G . To mFialek . To mFiale k

testifie db y telephon e a s follows . Mr . Fiale k worke dwit

h Mr . Linn e for

Smit h Cabl e durin g th e summe r

an dearl y fall o f

200 8 buildin g coaxial cabl e fo r GC I Cable . (Tr . 439 ) The y hadn o us e fo

r spray pain t

o n th e job . (Tr . 440 ) The y ha dapropan e grill ; Mr . Fiale k recalle di t bein g black , an dthat

th e propan e botd c screw s int o i t t o fue l it . (Tr . 443.448 ) Mr . Fiale k an d Mr . Linn e prepare dth e shipmen t fo r th e courier , wh o the y e^tpectedt o arriv e aroun d10:0 0 a.m . o r so . (Tr . 418 ) Whe n th e courier whic h Ms . Afusi aarrange darrive dQ t th e crew' s hote l i n Ketchikan an dcoul dno t

loadth e pallet s of

Smit h Cabl e item s int o th e courier' s trtick , Mr . Fialek , Mr . Linne . an dth e courie r loade dth e item s into th e courier' s truck . (Tr . 441-44,452 ) Mr . Fiale k testifie dthat

the y di dno t

shi p th e propan e grill , an dtha t i t wa s nor i n the shipmen t

whe n h e me t i t i n Fairbanks . (Tr . 444-46 ) IV

- Argument . A . Th e Shipmen t

Containe dHazardou s Materials . A s th e part y with di e burde n o f proof , th e Administrato r

i s oblige dt o prov e hi s cas e b y a preponderanc e o f

th e reliable , probative , andsubstantia l evidence . 1 4 CFT ^ 13.223 , I n thi s case , th e central questio n i s whethe r Smith Cabl e offere dtw o propan e cylinder s an daca n of spray pain t for .shipmen t b y ai r aboardpassenger-carryin g aircraft . I n ligh t o f th e testimon y an d evidenc e befor e th e administrativ e la w judge , th e answer

t o tha t questio n i s yes . Wit h regar dt o th e propane , bot h Mr . Fialek

andMr . Linn e testifie dtha t the y purchase dan duse d adark-colored , tabletop-size dpropan e gril l durin g thei r summe r journe y throughou t

Southeas t Alaska . It wa s fuele db y screw-i n typ e propan e bottles . Whe n th e jo b concluded , Smit h Cabl e arrange dfo r

it s crew t o shi p thei r

wor k trtick nort h on aferry , an darrange dfor alarg e palletize d loado f gear an dpersonal effect s to b e shippe db y air aboar dAlask aAirline s t

o th e company' s nex t jo b i n Fairbanks . O n th e mornin g o f

Septembe r

10 , 2008 , a

n unname dcourier

arrive dwit

h atruc k tha t coul dno t easil y accep t

th e palletize dshipmen t

a s initiall y prepared . S o th e cre w an dth e courie r brok e th e pallet s dow n an dth e thre e o f the mloade dth e item s piec e b y piec e int o th e courier' s truck . Accordin g t o th e waybil l prepare db y Smit h Cabl e an ddate dSeptembe r 10 , 200 8 a

t 1:3 2 p.m. . a 2 4 piec e Smith Cabl e shipmen t wei^iin g 1,213. 0 pound s wa s delivere dt o Alask aAirline s in Ketchikan for

.shipmen t t o Fairbanks . Th e shipper' s certificatio n bear s a n unknow n signature , bu t relate s that

i t wa s mad e "For : SMIT H CABLE SYSTEM S INC" , Belo w Smit h Cable'. s name an d besid e th e unknow n signature , abo x i s marke dstatin g tha t "THI S SHIPMEN T DOE S NO T CONTAI N DANGEROU S GOODS" . Whil e movin g th e shipmen t wit h asmal l forkhft , Mr . Cam p hi t abump , causin g acamp stov e withi n th e shipmen t

t o fall an d.spil

l it s contents . Conceale dwithi n were tw o propan e cylinders . Alarme db y hi s discovery . Mr . Cam p promptl y notifie dhi s coworke r Mr . Cook . Together , the y decide dto searc h th e entir e shipma u andse e wha t els e might

b e hidde n in th e Smit

h Cabl e shipment . Durin g dia

r search , Mr . Coo k

foun daca n o f spra y paint . A n Alask aAiriine s inter n Smit h (^afpl ^ Sy^^t^m^ , [nc . QM S No . FAA'2009-097 6 Administrator' s Closin g Argumen t Pag e 705/19/201 1 09:5 1 FA X 202493514 2 FA A+ DM S @1009/01 3 05/13/201 1 12:0 4 907271286 0 FA APAG E 09/1 3 photographe dth e propan e an d th e spra y paint , photograph s tha

t bot h Mr , Cam

p an d Mr . Coo k recognize din Exhibit s C- l throug h C-4 . A s pa n o f hi s ow n investigation , Mr . Coo k too k not e of th e trackin g tag s o n th e item s that containe dth e propan e an d th e spra y paint . Usin g th e tag numbers , whic h matche dth e numbe r o f th e waybil l tha

t Smit h Cabl e prepare dfo r

th e shipment . Mr . Coo k

determine dtha

t th e item s were pa n o f th e Smit h Cabl e shipment . Bot h Mr , Linn e an dMr . Fialek testifie dtha

t the y di dno t

includ e thei r

propan e gril l in th e Smith Cabl e shipmen t

aboar dAlask aAirlines . However , becaus e both were employe db y Smit h Cabl e an dbecaus e i t

i s thei r conduc t o n behal f o f Smit h Cabl e tha

t i s in question , thei r

testimon y mus t b e discoimte dt o som e degre e whe n weighe dagains t th e disintereste dtestimon y o f th e Alask a Airline s employees . Mr . Camp an d Mr , Coo k

had nothin g t

o gai n b y claimin g that

Smit h Cable' s shipmen t include dhazardou s materials . I n th e end , th e unequivocal , disintereste dtestimon y o f Mr . Cam p an d Mr . Coo k

tha t propan e wa s foundi n th e Smit h Cabl e shipment , combine dwith , th e photographi c evidence , an dth e admission s b y bot h Mr . Smith , Mr . Linne , an d Mr . Fiale k that th e Ketchika

n cre w ha d apropan e gril l an d propan e o f th e sor t late r discovere dwithi n th e Smit h Cabl e shipmen t

outweigh s th e denial s o f

Mr . Linn e an d Mr . Fialek an d require s afindin g that th e shipmen t

di d indee dcontai n forbidde n propan e a s alleged . Bot h Mr . Liime and Mr . Fiale k denie dtha

t the y use dan y spray pain t a s par t o f thei r wor k i n Southea.s t Alask athat

summer . However , neither o f themtestifie dtha

t thei r equipmen t

wa s devoi do f spray paint . The y merel y testifie dtha t thei r wor k didn' t requir e spray paint , not

tha t ther e wasn' t

an y spray pain t

around . Mr , Cam

p an d Mr . Cook , however , testifie dthat , upo n discoverin g th e conceale dpropane , ihe y performe daful l searc h o f

th e entir e 1,2,1 3 poun d shipment , foun don e conceale dcan o f spra y paint , an d photographe dit . Again , o n balance , th e disinterested , unchecke dtestimon y o f th e tw o Alask aAirline s employee s abou t thei r discovery o f th e spray pain t

an dthei r photographi c proof

, whe n weighe dagains t

th e relativel y intereste d testimon y o f

Mr , Linn e an d Mr . Fiale k tha t the y didn' t

nee dspra

y pahi t fo r thei r wor k and thei r failure t o testif

y that n o spray pain t

wa s presen t

withi n al l thei r

gear , gea r that shippe di n 2 4 piece s an d weighe dwd l ove r ahal f ton , compel s afinding tha t th e shipmen t

als o containe dth e spray pain t

a s alleged . Durin g th e hearing , counse l for Smit h Cabl e routinel y aske dquestion s suggestin g tha t th e Smit h Cabl e shipmen t

ma y hav e bee n adulterate dafte r i t wa s give n t

o th e courie r

for delivery t o Alask a Airlines . Thes e exchange s shoul db e disregarded . Non e of th e witnes.se s ever

te.stifiedtha

t The y observe dan y actua l adulteration . A t best , the y merel y lef

t ope n th e possibility , at

th e suggestio n of counse l for

Smit h Cable , tha

t becaus e Smit

h Cabl e use dacourier , i t

ma y hav e bee n possibl e for th e courie r

t o hid e item s withi n th e shipment . Fo r that t o b e tru e fo r

th e propan e woul d requir e atremendou s coincidence , tha t th e courier

woul dadulterat e th e Smit h Cabl e shipmen t no t wit h jus t som e randona-hazardpu * material , bu t b y the additie » o f

propan e cylinder. ^ o f

atyp e an dkin dmatchin g th e one s that Smit h Cable' s employee s actuall y ase dto fuel thei r propan e grill . Moreover , give n Mr . Cook' s testimon y tha t h e foim dth e ,?pra y pain t widii n on e o f

th e boxe s o r crate s i n th e shipment , on e woul dhav e t o believ e tha t th e courie r

opene du p on e of

th e boxe s o r crate s an d hi d acan o f

spray paint

inside . Whil e Mr . Linn e an d Mr . Fialek

testifie dtha

t the y wer e force dto brea

k dow n diei r

pallet s t o fit th e shipment

withi n th e courier' s truck , the y Smit h Cabl e Systems , IM; . DM S NO . FAA-2009-097 6 Administrator' s Closin g Argumen t pag e 505/19/201 1 09:5 1 FAX 202493514 2 FA A • * QM S g|010/01 3 05/13/201 1 12:0 4 587271260 0 FA A PAG E 10/1 3

di dnot testif y that doin g s o require dthe mt o ope n an y o f th e shipment' s crate s or

boxes . Functionally , adulteratio n i s an affirmativ e defense , an dSmit h Cabl e presente dn o testimon y o r evidenc e tha t

an y adulteratio n actuall y occurre dhere . Th e suggestiv e questionin g b y Smit h Cable' s attorne y i s not

evidenc e an dshoul db e disregarded . B . Smit

h Cable_Committe dSixtee n RegMlator v Violations . Smit h Cabl e defens e agains t

th e sixtee n cite dregulatory violation s ha s bee n limite dsolel y to whethe r it s shipmen t

containe dhazardou s materials ; Smit h Cabl e admit s it s .shipmen t wa s no t accompanie dby aShipper' s Declaratio n fo r Dangerou s Good s an dtha t th e waybil l wa s marke d t o indicate tha

t ti o dangerou s good s wer

e included . Answer

a t 1-2 . I n offerin g undeclare d hazardou s material s for

transportatio n b y air . Smit h Cabl e violate deac h o f

th e HMR s a s alleged ; Smit h Cabl e mad e th e offe

r (Sectio n 17L2(e)) . failedt o properl y describ e th e hazardou s material s i

n th e shippin g paper s (17 2 Subpart C) , faile dt o properl y mar k th e piece s containin g hazardou s material s (17 2 Subpar t D) , faile dto properl y labe l th e piece s containin g hazardou s material s (17 2 Subpart

E) , faile dt o provid e emergenc y respons e informatio n (17 2 Subpart G) . an doffere dpropane , whic h i s forbidden for tran.sportatio n aboar dpassenger-carryin g aircraf t (173.27(b)(1)) . C . Smit

h Cabl e Shoul dB e Assesse da$60.00 0 Civi l Penalty . Th e administrativ e law judg e ha s take n judicia l notic e of th e Administrator' s Hazardou s Material s Sanctio n Guidanc e (Tr , 225-26) , founda t Appendi x C t

o Orde r 2150-3B . Th e Administrato r

ha s applie dtha

t guidanc e t o propos e Smit h Cable' s civi l penalty a s follows . Th e guidanc e provides : Althoug h th e notic e o

f propose dcivi l penalty ma y cit e numerou s violation s o f a particula r par t o r subpa n of

th e HMR , unle,s s upwarddepartur e i s justified , a singl e penalty amoun t

for eac h violatio n grou p i s ordinaril y use dt o reac h th e ful

l sanction . Orde r 2150.3B , Appendi x C , at C-9 . A s note dabove , thi s cas e involve s sixtee n violation s i n si x violatio n groups : • 171.2(e ) (imprope r

offerin g o

f hazardou s material) ; • 17 2 Subpar

t C (.shipping papers) ; • 17 2 Subpart

D (marking) ; • 17 2 Subpar

t E (labeUng) ; • 17 2 Subpart

G (emergenc y response) : an d

• I73.27(b)(I ) (forbidde n o n passenger-carryin g aircraft) . Smith Cabl e offere dundeclare dpropan e fo r shipmen t aboar dpassenge r

aircraft . Becaus e propan e i s forbidde n aboar dsuc h aircraft , tha t offens e fall s withi n Offens e Categor y II I o f Figur e C- l o f Appendi x C . Smit

h Cabl e als o offere dundeclare dspray paint , whic h i s no t prohibite dfo

r shipmen t aboardsuc h aircraft : tha

t materia l woul dhav e place dSmit

h Cable' s offense s int o Smit h Cab U Systems , Inc . DM S No . FAA-2009-097 6 Administrator\ t

Closin g Argiimtn t

Pag e 905/19/201 1 09:5 1 FA X 202493514 2 FA A^ DM S @011/01 3 05/13/201 1 12:0 4 907271280 0 FA APAG E 11/1 3

Offens e Category Tl . However , fo r purpose s o

f calculatin g sanctions , th e Administrato r doe s no t .see k additiona l penaltie s fo

r th e spray paint

an dinsteadcalculate s th e entir e penalty under Offens e Category III . Smith Cabl e L

s abusines s entity . Fo r

sanctio n purposes , th e Administrato r ha s no t classifie d Smit h Cabl e a s abusines s tha

t u.se s o r handle s hazardou s material s in th e cotirs e of it s busine-ss , or a s abusinct s tha t

regularl y offers , accepts , o r transport s hazardou s materials . A s aresult . Smith Cabl e face s th e i,owe.s t penall y rang e applicabl e t o abusines s unde r Figur e C-l . Under Figur e C-l , abusines s entit y tha t commit s Offens e Category II I violation s face s apenalty o f $5,00 0 t o $16,20 0 fo

r eac h violatio n group . Here , th e Administrato r ha ddetermine dthat , give n th e absenc e o f

identifie daggravatin g an dmitigatin g factor s i n thi s case , th e aggregat e weigh t o f thi s cas e i s moderate , indicatin g tha t apenalt y i n th e middl e o f

th e rang e i s appropriate . Th e midpoin t betwee n $5,00 0 t

o $16,20 0 i s $10,600 . Fo r thi s ca.se . th e Administrato r

ha s rounde dthi s numbe r dow n t o $10,00 0 pe r

violatio n group . Wit

h si x violatio n group s in ihi. 5 case , then , th e afipropriate civi l penalty t o b e impose di s $60,000 . V . Conclusion . Fo r th e foregoin g reasons , th e administrativ e la w Judg e shoul dente r

a n orde r findin g th e violation s a s allege di n th e complain t an dimpos e a$60,00 0 civi l penalty . DATE D thi s \J da

y o f May . 201! .

HOWARD L . MARTIN , JR . Regional Counse l

B y Wm'.B l taf f Anome y

Smit h Cabl e Systenvi . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argum.en t P^g ^ ^ 0+ OM S I2I012/01 3 05/19/201 1 09:5 2 FA X 202493514 2 FA A DO/iJ/yai i i:^:U

4 9072712S0 0 FAA

rKRTrFTCAT K

O F SERVIC E Re : Smith Cabl e Systems . Inc . FA A Docke t No . CP09AL001 2 DM S No . FAA-2009-097 6 I HEREB Y CERTIF Y that on thi s dat e I hav e .-jeive

dacop y o f

th e foregoin g b y postage-prepaid , certifie dmail , retur

n receip t requested , facsimile , an demai l lo i Th e Honorabl e Richar dC . Goodwi n Administrativ e Law Judg e Offic e o f Hearing.s , M-2 0 U.S . Departmen t

o f Transportatio n 1.20 0 Ne w Jerse y Avenue , S.E . Eas t Buildin g Groun dFloor , Roo mE l 2-32 0 Washir^ton , D C 2059 0 Fax:(202)366-753 6 Email : Richard.Goodwin@dot.go v I HEREB Y FURTHE RCERTIF Y that o n thi s dat e I hav e serve dth e origina l an d tw o copie s o f th e foregoin g b y postage-prepaid , certifie dmail , retur n receip t requeste dan d facsimil e to : Federal Aviatio n Administratio n ATTN : Docke t

Clerk , AGC-43 0 Wilbu r Wright Buildin g - Suit e 2WI00 O 80 0 Independenc e Avenue . S W Washington , D C 2059 1 FAX ; (202 ) 493-502 0 r HEREB Y FURTHE RCERTIF Y that o n thi s dat e I hav e serve dcopie s of th e foregoin g b y postage-prepai dfirst-clas s mai l to : Bren i R . Cole Marsto n & Cole , P. C 82 1 N Street , Suit e 20 8 Anchorage , AK

9950 1 Fax ; (907 ) 277-800 2 

### DATED : ^<^ ^ y.%^J^-£f/ /

<^^ ^ Fed,era l Aviatio n Administratio n J f / Smit h Cabl e Systems , Inc . DM S No . FAA-2009-097 6 Administrator' s ChsifT

g Argument

Pag e I J05/19/201 1 09:5 2 FA X 202493514 2 FA A* DM S 01013/01 3 05/13/201 1 12:0 4 907271280 0 FAAp^g ^ ^3^,^ 3

Offic e o f Regiona l Counse l 22 2 Wes t 7t h Avenue . Bo x 14 , AAL- 7 Anchorage , A K

99513-758 7

Smit h Cabl e Systems . Inc . DM S No . FAA-2009-097 6 Administrator' s Closin g Argumen t Pag e 1 2